Asian equity markets, led by China’s Hang Seng Index and Japan’s Nikkei Stock Average are making up a larger portion of many investors portfolios. The Hang Seng rallied 1% or 238 points to 24,201.96 Wednesday. The index is now within 164 points of its 52-week high.
The 2017 outlook for Asian equities “remains constructive” in the eyes of Goldman Sachs Research’s Tim Moe, despite risks from potential trade disruption and India’s demonetization. Moe outlines 3 Key Themes to Dominate the Asian equity markets in 2017:
- Reflation – the global industrial cycle is turning upwards
- Risks – Trade Barriers as Asia is export dependent
- Unique Asia – dynamics that impact only Asia
Moe, the chief Asia-Pacific equity strategist for GS Research, anchors his view on the global reflation trend and subsequent improvements in Asian corporate profits, which stagnated for six years before beginning their recent upturn.
